U.S. police pension fund may not pay all of its workers the full amount of their pensions
U.K. police and fire pension funds are likely to have to pay all the workers of their pension funds the full value of their retirement benefits after the UK voted to leave the European Union.
The move has sparked a wave of resignations in the British police and the fire service, prompting the Prime Minister to warn that they are likely not to get a fair share of the funds they are owed.
Prime Minister David Cameron is scheduled to address the British Parliament on Tuesday and will say that if there are no plans to pay the pension fund’s full amount, he would call for a snap election to resolve the issue.
The pension fund, the Fire and Police National Pension Scheme (FPNS), has paid out nearly $2 billion in annual pension payments to 1,500 police officers and firefighters since 2008.
That’s a massive sum of money that is paid to officers and staff at the time they take their retirement pay.
But that money was not included in the U.N. agreement to protect their pension entitlements, which were made last year, according to Reuters.
Police and Fire National Pension scheme was formed in 1972 to help protect the pensions of thousands of police officers who were then fighting in the Vietnam War and were living in cramped quarters at a time when it was a war zone.
Since then, the scheme has invested in infrastructure and other projects around the U-K and other countries in Europe.
But now, the pension is facing a financial crisis that is costing the scheme billions of dollars.
In December, the fund’s CEO, David Bick, told Reuters that the pension funds’ pension obligations would be fully funded after the Brexit vote and would be available to the pension schemes, which are supposed to keep them solvent.
In a statement on Tuesday, the British government said it is committed to ensuring that all pension funds, including the Fire Service and Police Pension Fund, continue to be funded at full value, and said the UK’s pension scheme was one of the most resilient in the world.
British Prime Minister Theresa May is expected to address parliament on Tuesday.
She will ask for a vote to end the Uuk’s Brexit-induced uncertainty by repealing the EU’s Brexit divorce agreement.
“If the UUK Government decides to leave, we will continue to invest in infrastructure, education, health and housing and invest in a future that works for everyone,” May said in a statement.
The prime minister has said that Britain’s departure from the European union will result in a dramatic reduction in taxes for British businesses and a boost to the economy.
The vote was expected to be the first in a series of Brexit referendums on the country’s future, and the result could affect millions of jobs.